Mol, which operates refineries in Hungary and Slovakia, said it could source most of its oil from non-Russian sources before Orban-Trump meeting

The only Hungarian oil refining company, Mol, which operates refineries in Hungary and Slovakia, said it could source most of its oil from non-Russian sources, indicating a change in tone ahead of a crucial meeting between US President Donald Trump and Hungarian Prime Minister Viktor Orbán on Russian oil sanctions, UNN reports, citing Bloomberg.

DetailsMol Nyrt., which operates refineries in Hungary and Slovakia, said that a pipeline from Croatia could be an alternative for approximately 80% of its supplies if the flow of Russian oil through the Druzhba pipeline via Ukraine ceases.

The statement came hours before Orbán and Trump’s meeting at the White House on Friday, where the Hungarian leader seeks to obtain an exemption from US sanctions on Russian oil, Bloomberg reported earlier.

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“If the flow of crude oil through the Druzhba pipeline significantly decreases, Mol can increase the use of the Adriatic pipeline and supply about 80% of the oil used at its landlocked refineries, although this will entail higher technical risks and logistical costs,” Mol’s earnings report, published on Friday, states.

This statement marks a turning point after months of statements by Orbán and Mol that the landlocked country has no alternative to Moscow in terms of energy. Hungary increased its purchases of Russian energy after Moscow’s invasion of Ukraine in 2022 – to such an extent that about 90% of its oil imports come from Moscow.

The country received temporary relief from EU sanctions and enjoys lower prices for Russian fuel, which helped Mol expand its refining margins, boosting its profits in the third quarter.

Failure to obtain a deferral would mean “hard times” for Hungarians, Orbán told the media on his way to Washington on Thursday.

As the EU plans to gradually phase out all imports of Russian energy after 2027, Mol will have to abandon Russian oil. The question is how much time it will have to do so as a result of US sanctions. Mol said it is “cautiously progressing” with the modernization of its refineries in Hungary and Slovakia to increase capacity for processing non-Russian oil.

“Mol’s future depends, first and foremost, on the gradual phasing out of Russian crude oil,” Erste Bank analyst Tamás Pletser wrote in a note to clients. “Orbán is meeting Trump in Washington, and this will be a crucial meeting in this regard.”

Until now, the Orbán administration and Mol have consistently downplayed the potential role of the Adriatic pipeline for oil supply, arguing that Hungary’s landlocked status makes Russia the only effective source. There is also an ongoing dispute over the capacity of the Croatian pipeline.

This is not the only headache for Mol and its chairman and CEO Zsolt Hernádi, who accompanied Orbán to Washington as part of a business delegation.

Losses from a major fire at Mol’s Hungarian refinery last month will reduce production by as much as 300,000 tons per month until repairs are completed, according to Mol’s initial damage assessment. The group is now forecast to process 11.5 million tons of oil this year, compared to the planned 12 million tons.

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